CHEPLAPHARM announces that it has agreed on 21st April with Eli Lilly and Company on the acquisition of the worldwide commercial rights for Zyprexa®. The subject of the transaction is the well-established and positioned olanzapine/olanzapine pamoate monohydrate (“OPM”) portfolio consisting of ZypAdhera® / Relprevv (depot IM), Zyprexa® IM2 (IM), Zyprexa® Zydis / Zyprexa® Velotab (ODT form), and Zyprexa® (oral form, tablets). These products are indicated for the treatment of schizophrenia and bipolar disorders.
As a leading acquirer of originator brands from big pharma companies, CHEPLAPHARM has built up a strong and diversified portfolio of well-established medicines over the last 20 years. “I am very excited about announcing the acquisition of this attractive portfolio and look forward to a successful closing of the transaction with Lilly”, says Edeltraud Lafer, CEO of CHEPLAPHARM. “This acquisition strengthens our portfolio in the therapeutic area of the central nervous system and represents a further milestone in CHEPLAPHARM’s success story. It demonstrates our ability to manage increasingly bigger deals, while our deep and long-standing experience makes me quite confident that we will be able to ensure an efficient and seamless integration as well. This opens completely new opportunities for the future.”
Ilya Yuffa, executive vice president and president, Lilly International, said: “Zyprexa® is an important treatment that continues to help patients around the world and we’re optimistic in transitioning it to CHEPLAPHARM – a proven company that will continue to deliver it to those in need. Finding new, innovative solutions for patients is one of Lilly’s key priorities – we’re committed to advancing our core business and pipeline, which includes the next generation of life-changing medicines.”
CHEPLAPHARM intends to finance the closing purchase price from new debt, a drawdown under its existing revolving credit facility as well as cash on hand. After giving effect to the acquisition and the financing thereof, CHEPLAPHARM’s net secured leverage ratio is expected to be approximately 3.7 times. In connection with the acquisition, CHEPLAPHARM obtained a committed bridge financing in an amount of €750 million from a syndicate of banks.
The transaction is expected to close around the end of the second quarter of 2023, subject to the satisfaction of customary closing conditions. It includes product registrations and intellectual property, while it does not include any transfer of manufacturing facilities or employees.
 Excluding South Korea.
 IM = intramuscular.
 Preliminary information as of and for the year ended December 31, 2022, which is subject to change. Calculated by dividing CHEPLAPHARM’s as adjusted secured net debt by adjusted EBITDA (taking into account the estimated EBITDA contribution of Zyprexa® and the other products acquired by CHEPLAPHARM after January 1, 2022). As adjusted secured net debt takes into account the net proceeds from the structured investment closed in February 2023 as well as the use of proceeds therefrom but excludes the deferred purchase price portion for the Zyprexa® acquisition.